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Friday, September 19, 2014

Japan working on 18 year breakout, Yen 30 year breakdown

by Chris Kimble

CLICK ON CHART TO ENLARGE

Buy & Hold investing has worked pretty well when it comes to many stock indexes around the world. One place where this strategy has been disappointing is the Nikkei 225 over the past couple of decades. If one happened to buy the Nikkei in 1990, they would still be down over 50%, twenty-four years later.

The above chart highlights a resistance line that has been heavy for the Nikkei for almost two decades. The Nikkei is now making an attempt to break free from this resistance line.

At the same time the Yen is working on breaking a support line that has been in place for almost 30 years.

Could a breakout by the Nikkei help push the S&P 500 and major European markets even higher?

Buyer beware- One of the popular ETF's for Japan is EWJ. Check out its resistance line, because it looks a good deal different.

If you like the idea of buying breakouts or shorting breakdowns, these are markets to keep on your radar screen.